Oil holds surge as OPEC+ mulls biggest supply cut since 2020
BNN Bloomberg
Oil held a two-day surge before an OPEC+ meeting at which the alliance is considering the biggest supply cut since 2020 to revive prices.
West Texas Intermediate futures traded near US$86 a barrel after jumping almost 9 per cent over the previous two sessions. The producer group is set to discuss reducing output by as much as 2 million barrels a day, delegates said before the group meets in Vienna later Wednesday. That’s double the volume previously flagged.
A cut of that magnitude would reflect the scale of concern from the alliance about the outlook for energy demand in the face of rapidly tightening monetary policy. The U.S. benchmark recently capped its first quarterly loss in two years after giving up all the gains made following Russia’s invasion of Ukraine.
